[canadadry]

I have been wondering about opportunity cost and can't mind asking:rolleyes:,
What exsacly its an opportunity cost and how does this relate to economic?:confused:

[smoothy]

In a nutshell, Its what you have lost had you invested in the opportunity that would have earned more than it cost.

Lets say for argument. You have $100,000.

You saw the stock market go down horrible fast but you would rather put the money in a box under your bed than jump in and buy while the market is down.

6 months later the market doubles. You still have the $100,000 under your bed... but had you invested it you would have had $200,000. Your choice to put it in a box had an opportunity cost of $100,000.

Look at opportunity cost as a "well if I did that I could or will have made X more than I would if I did nothing or something else that wasn't in the interest of making a profit".

Or... if you take X out of the economy... you lose the opportunity for that to have added to the economy.

Sort of Like a liability... on your balance sheet... but a fantom liability.

[canadadry]

Awsome, this was music to me ears, very clear.